Business, Traders Hike Prices Over New Tax Laws

Many Nigerians are complaining that shop owners and traders are using the new tax laws as an excuse to hike the prices of goods. While the government says these laws are meant to help the economy grow, some sellers are reportedly increasing prices arbitrarily.

The Federal Government has explained that the new laws should actually reduce certain taxes in the long run. However, findings show that "Value Added Tax" (VAT) charges and general price adjustments are being added to items even where they shouldn't be.

President Bola Tinubu signed these four major tax reform bills into law last June. These include the Nigeria Tax Act and the Nigeria Revenue Service Act. The government says this is the biggest change to the tax system in many years.

​The Nigeria Revenue Service (NRS) claims these changes will make the country more attractive to investors. They want to create a stable system that helps everyone. Despite this, the immediate effect on the streets is that things are becoming more expensive for the average person.

there is a gap between what the government promised and what is happening in the markets. While the laws aim for growth, the public is currently feeling the heat of higher costs from traders who claim their hands are tied by the new rules.